FTSE Rises Led by Banks

The FTSE 100 edged higher on Wednesday as investors assessed Chancellor John Healey’s first budget, which emphasized fiscal discipline while introducing measures to ease the cost of living. Healey said fiscal headroom would narrow to £15 billion in 2029-30 before recovering to £22 billion the following year. Banking stocks rallied after the government’s tax measures proved less severe than feared, with Standard Chartered gaining over 4%, while Lloyds and Barclays rose around 3.8% each. The temporary increase in the bank surcharge to 6%, below the previously feared 8%, helped support sentiment. Betting companies also advanced after machine games duty was raised to 25% from 20%. However, GSK fell more than 5% following disappointing results, with declining Shingrix vaccine sales raising concerns about future growth. Unilever also dropped over 3%, as weakness in North America overshadowed stronger performance in emerging markets, ahead of the planned food business separation.